Signs of a Boris bounce

House price growth and transactions picked up, as political uncertainty eased following December’s general election. In the near term, leading indicators hint at a further recovery over the remainder of Q1. But with house prices high and interest rates already close to their floor, the housing market fundamentals have seen little improvement. As a result, we expect the recent rebound to be short lived, with growth in house prices and transactions petering out before the middle of the year.